TPAS Launches Internet Annuity Planner
02 May 2008
The Pensions Advisory Service (TPAS) is pleased to announce the launch of a web based tool to help people with the choices and decisions they have to make when they come to retire and want to turn their pension saving into an annuity.
The tool was conceived by a working party comprising the DWP, HM Treasury, HMRC, the Pensions Regulator, Age Concern, the Association of British Insurers, the Equalities and Human Rights Commission, the Financial Services Authority and the National Association of Pension Funds, and has been designed with their assistance. We are grateful for their input.
The tool is available to all but will be of particular help to those who have relatively small pensions savings and find difficulty in getting good independent advice. It is a self-help tool that tries to simplify a complex process and will encourage people to shop around and use the open market option rather than simply accept what is on offer from their own provider. The difference could mean as much as a 20% higher income for the rest of their life.
Mike O'Brien, Minister for Pension Reform, said "Choosing the right annuity is one of the most important decisions a person will take in their life. This web tool will help guide people through the various annuity options such as providing for loved ones after your death and protecting your income against inflation. People can then make an informed decision about the best type of annuity for themselves and their partner."
Angela Eagle, Exchequer Secretary to the Treasury, said "With all the variety and choice in the market, it is really important that people get the right annuity at the best available rate. This webtool, one of the recommendations of the Government's review of the open market option for pension savings, will help guide people to make the right decision for their future."
Malcolm McLean, TPAS Chief Executive, commented "With the move away from employer-sponsored final salary pension provision, more and more people will be retiring from money purchase pension schemes in the future and will need help to make the right decisions in buying an annuity. Our tool will help them to understand the choices they have and will give them confidence to use the open market where better rates may be available. This can make such a difference to their income in retirement but so many still do not avail themselves of the opportunity."
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